I can see it in extreme cases. Lesser cases should be dealt with by the school.

But in general, I'm skeptical of whether this is even effective. I think the roots of the bullying aren't going to go away just because you make an example of the worst ones. There are a few dedicated bullies in every school. But a lot of kids bully each other without ever thinking that's what they're doing. Either they're oblivious to how vulnerable the other kid is, or more often justify their behavior to themselves -- "she's always giving me weird looks, I was just defending myself."

There's also the potential for the victim to be the one who gets caught and punished. True bullies are masters at getting away with their behavior. It's the victim who might get fed up and take a swing back at the wrong moment, and be the one who gets caught.